Mortgage : Home Loans : Refinance : Home Equity Loans

By Louie Latour

FICO stands for Fair Issac and Company; they are a credit agency many lenders use when reviewing your credit. If you have a poor credit rating, these are the people that have designated it as poor.

Fair Issac and Company are not required by law to disclose how they calculate your FICO score; however, you can be sure the contents of your credit reports weigh heavily on the calculation.

Your FICO Score Explained:

The FICO Score system is fairly straightforward. The higher FICO score you have the better. You will be able to qualify for higher loan amounts, better terms and conditions, and better interest rates.

If your FICO score is lower than 500 your options for a mortgage loan are limited. There are subprime mortgage lenders that specialize in bad credit mortgages; however, you will pay a premium for their services.

If your FICO score is 500-600 you will be able to find competitive financing; however, you may be required to pay points up from in order to qualify. Points are prepaid interest that you must pay when required, at closing. A

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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This entry was posted on Thursday, August 24th, 2006 at 3:04 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.